Just to clarify what you should be expecting from the E85 sport button it won't unleash a beast or give any performance gains at all. It only does two things on a manual, it speeds the throttle movement so makes the engine 'feel' more responsive (although it isn't) and reduces power assistance to the steering weighting it up. No exhaust flaps or noise changes, no engine mapping changes, zero power gain, no suspension changes. That said you should definitely feel the difference particularly in steering and if there is none I'd be checking wiring connections etc as mentioned previously to eliminate the basics.
On an auto or SMG box it also improves the gearbox responses. Other BMW group models now include some or all of the other features in sport but on the E85/6 manual it's a placebo button and wonderful man toy.
The attached technical files explain all the CAN BUS links and much much more (It's a Latvian site but browsers should auto translate)
http://www.bmwclub.lv/files/04c_MS45_DME_Part_4.pdf Sportbutton etc